Purchase Order Type

The Purchase Order Type field is used to distinguish between a Direct Ship purchase order and a Warehouse Ship purchase order.  

A Direct Ship purchase order (Purchase Order Type = 'D') may be used when a shipment is sent from a vendor directly to the customer.  The On Order balance for the ordered part is not affected by a direct ship purchase order and when the inventory receipt is recorded, inventory balances are not incremented.  The receipt should be recorded, however, so that the liability will be recognized in Inventory Accounting processing and so that the order does not appear as if it has an out standing balance.  

A Warehouse Ship purchase order should be used to record the more common situation in which the merchandise is received into the warehouse and shipped from there to the customer.  

Defines the type of purchase order being entered.  This field must exist on Reference File category 437.  The default value is B (blanket order).